Original Research

The constraining factors of the future of performance management

Mmathapelo A. Mojaki, Cecilia M. Schultz, Leigh-Ann Paul Dachapalli

Received: 28 Jan. 2025; Accepted: 01 July 2025; Published: 28 Aug. 2025

Copyright: © 2025. The Author(s). Licensee: AOSIS.
This is an Open Access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

Orientation: The future of performance management (PM) holds great potential, driven by technological advancements, shifting workforce demographics and evolving organisational needs, all of which promote innovation and continuous improvement in the field.

Research purpose: The purpose of the research was to explore the key factors constraining the success and progress of the future of PM at the City of Tshwane Metropolitan Municipality.

Motivation for the study: As the municipality strives to improve service delivery, accountability and operational efficiency, it faces multiple challenges in transforming its PM system. The motivation for this research was to explore and address the factors that hindered the successful progression of PM practices within the City of Tshwane Metropolitan Municipality.

Research approach/design and method: A qualitative research approach was employed, involving a total population of nine human resources (HR) personnel. In-depth interviews via Microsoft Teams were conducted and thematic analysis was applied.

Main findings: The study identified the following themes: organisational change, financial constraints, poor organisational leadership and organisational politics.

Practical/managerial implications: Effective PM in the municipality is crucial for ensuring efficient service delivery and meeting the needs of the residents. Investing in technology, workforce development, financial budgeting methods and innovative governance models will be crucial for shaping the future of PM at the City of Tshwane Metropolitan Municipality.

Contribution/value-add: This study provides a foundation for future research, highlighting that transforming the PM process is essential to address evolving employee and business requirements in a rapidly changing world of work.

Keywords: future performance management; technology; politics; leadership; finance.

Introduction

Performance management (PM) is a fundamental human resources (HR) function that improves organisational effectiveness by promoting the growth and development of individuals and teams (Chithra & Pillai, 2024). However, research on PM points to it as a persistent contributor to underperformance in both large and small organisations (Mendy, 2021). The literature identifies various key factors that can negatively affect an organisation’s success, including its organisational culture, its ability to secure financial resources, the effectiveness of its leadership and the politics in the organisation (Mendy, 2021).

Ineffective PM hampers performance and severely impacts the outcomes of the company, while effective PM promotes organisational success (Prasad et al., 2020). Furthermore, a PM process applied inconsistently across an organisation can lead to variable and inequitable ratings and standards, leaving employees confused about the criteria for evaluation (Govender & Bussin, 2020). Consequently, business operations may suffer considerable negative impacts from the improper implementation of such a PM system (Govender & Bussin, 2020).

The cornerstone of an organisation’s success is a trained and productive workforce, and with effective use of HR, businesses can reach their objectives (Janati et al., 2020). To improve organisational performance and optimise HR activities, according to Udekwe et al. (2022), executives should strategically integrate financial flexibility by investing more in PM tools. This approach will support a more agile and responsive organisational structure, leading to long-term success. Therefore, PM is critical for controlling organisational effectiveness (Prasad et al., 2020).

The future of PM shows great potential, driven by technological advancements, workforce demographic shifts and evolving organisational needs, with new trends emerging to meet changing demands and expectations (Nair & Dev, 2023). However, despite these opportunities, several constraining factors threaten to hinder the progress and effectiveness of PM systems. These constraints, ranging from entrenched traditional practices to emerging challenges, can limit the ability of organisations to fully realise the benefits of modern PM (Nair & Dev, 2023).

This article explores the key constraining factors of the future of PM, which include organisational change, financial constraints, poor organisational leadership and organisational politics, and the challenges that must be addressed to unlock the full potential of this critical organisational function. The contribution of this study lies in identifying and analysing the key constraining factors that impact the future of PM within the City of Tshwane Metropolitan Municipality (CoTMM). The study contributes to the existing body of knowledge by addressing crucial gaps in understanding the systemic and operational challenges of local government. Lastly, the research provides actionable insights and recommendations to enhance the effectiveness of PM systems in the municipality.

Problem statement

The CoTMM’s many challenges in maintaining and upholding an effective PM system are exacerbated by practical workplace problems. Practical difficulties such as disruptions caused by frequent organisational changes, a lack of funds because of financial constraints, poor leadership that fails to provide clear strategic direction and predominant organisational politics have all weakened the effectiveness of the current PM practices at the municipality (Sebola, 2024). These challenges lead to misaligned objectives, low employee morale, inefficiencies and a lack of accountability, affecting the municipality’s capacity to carry out its mandate successfully (Thusi & Selepe, 2023).

Despite the crucial significance of PM in the public sector, academic research has yet to thoroughly explore the consequences of these challenges in the context of local government (Liu & Jagadish, 2024). In particular, there has been limited investigation into how the dynamics of the Fourth Industrial Revolution (4IR) interact with existing challenges, such as financial constraints and political interference, to shape the future of PM in municipalities such as Tshwane (Sibiya, 2023). Furthermore, the relationship between leadership effectiveness and the successful adoption of the PM system in resource-constrained environments remains under-researched (Bonini et al., 2024).

This gap between practice and research highlights the need for a thorough examination of the factors constraining PM, as well as the development of innovative, relevant strategies to address these challenges. Bridging this gap is critical for improving organisational performance, promoting accountability and maintaining long-term service delivery in the CoTMM and similar public sector institutions. This article seeks to explore the complexities of PM practices, with a particular focus on the factors limiting the future of PM practices at the CoTMM.

Research purpose

The purpose of this study was to explore the key factors hindering the effectiveness and progress of the future of PM at the CoTMM by using a qualitative research approach. The study collected data through in-depth interviews and applied an interpretative approach to explore and understand the complexities of the phenomenon under investigation. The interpretative approach was integrated with phenomenology, which is a concept that provides researchers with a theoretical framework for understanding experiences at the level of perceived reality (Borghmans & Laletas, 2023).

Literature review

This study is underpinned by the Ability-Motivation-Opportunity (AMO) theory, a foundational framework in human resource management (HRM) that explains employee performance as a function of three key components: ability, motivation and opportunity (Tunio et al., 2023). The theory was found to be essential to understanding the complexities of the future of PM at the CoTMM in order to place this research into a recognised academic context.

Underpinning theories

The theories selected for this study provided the researcher with a comprehensive understanding of the factors constraining the future of PM. The AMO theory, comprising the concepts of ability, motivation and opportunity, was chosen as an underpinning of this study on PM (Bos-Nehles et al., 2023). Saad (2023) defines the AMO theory as a theory which highlights the interconnection of three critical factors: abilities, motivation and opportunities, which suggests that organisations can improve their overall performance and productivity by effectively integrating these factors into their strategies and practices.

The AMO theory is a well-known framework in HRM that provides guidelines for improving long-term performance (Tunio et al., 2023). The theory is practical and adaptable, making it appropriate for integration with HR strategies such as PM and training (Tunio et al., 2023). According to the theory, organisations that implement HR practices aligned with AMO will experience positive individual and organisational outcomes.

The AMO theory was chosen for this study because of its features, which enable organisations to improve employee performance by enhancing employees’ abilities and motivation through rewards, good PM and opportunities for knowledge-sharing and problem-solving participation (Al-Tit, 2020).

Performance management is an essential tool for HR professionals and managers in their quest to maximise employee productivity and assist employees to realise their full potential. PM considers employees’ past, present, and anticipated future to determine how best to support their performance and align their contributions with organisational goals (Gakinya, 2023). Thus, this section provides a review of literature on organisational change, financial constraints, poor organisational leadership and organisational politics, focusing on how these factors impact the future of PM at the CoTMM.

Change management is the second underpinning theory for the literature review. Change is inevitable in today’s world, especially within organisations (Darmawan & Azizah, 2020). Organisations need to constantly adapt their operations to stay abreast of evolving business trends. For this reason, organisations should adopt strategies to manage change (Chowdhury & Shil, 2022). Change serves to keep the organisation dynamic while also improving organisational success and employee performance, adapting to the environment and shifting behaviour patterns in the workplace (Darmawan & Azizah, 2020). However, organisations often implement changes by focusing on their successful execution without considering how these changes will impact the career paths and livelihood of individuals within the organisation (Rudnev, 2020).

Change is a process that modifies the course of history or development, potentially impacting an organisation’s systems or functionality (Darmawan & Azizah, 2020). However, not all planned changes are successful or universally accepted by employees. When the purpose of a change initiative is unclear or unconvincing, it is unlikely that the organisation will fully commit to the process or consistently take accountability for its effective implementation (Mabasa & Flotman, 2022). The most significant barrier to organisational change is the deeply rooted organisational culture and perceptions which relate to established norms and accumulated work experience (Rudnev, 2020). Organisational changes can impact culture, products and services, technology, structure and strategy, and cause employee discomfort (Furxhi, 2021).

According to the data, one of the factors contributing to organisational change failure is employees’ resistance to change (Darmawan & Azizah, 2020). People are resistant to change because they perceive it as a threat to their status and financial rewards (Karaxha, 2020). Hanafi et al. (2021) maintain that change is the new normal; implementing it can be difficult and may have poor success rates, as organisations struggle to adopt change effectively. Any attempt to change may encounter objections; therefore, businesses should automate methods to reduce resistance, allowing for a smooth transition of change (Margherita & Braccini, 2021).

To effectively address resistance to change, the municipality would need to implement proactive measures such as upskilling employees, aligning organisational culture with advancements in technology, fostering open and transparent communication, and ensuring strong leadership support throughout the change process (Ramadhani et al., 2024). Performance management at the municipality will need to evolve in the future of work to keep up with the changing workforce. Every industrial trend in the world today is talking about the hybrid workplace and every business has to prepare for easing into the hybrid workplace (Iqbal et al., 2021).

Performance management constraints

The performance of an organisation is closely tied to its access to and the availability of financial resources, which constitute a critical aspect of the business environment in which it operates (Abdisa & Hawitibo, 2021). Many South African municipalities have had consistently negative audit opinions for some time, and their financial situations have been deteriorating year after year (Mashabela & Thusi, 2024). Different factors drive this problem, such as corruption, maladministration of funds, a lack of transparency and insufficient management. These issues not only undermine the financial stability of municipalities but also hinder the delivery of essential services to citizens and negatively affect overall performance (Mashabela & Thusi, 2024).

Effective financial planning is critical for improving organisational performance and promoting sustainable development. However, the relationship between financial constraints and organisational performance is reciprocal and is defined by mutual influence and mutual promotion (Yao et al., 2022). The survival and growth of organisations rely strongly on financial support and the absence of financial support hinder improvements in organisational performance (Yao et al., 2022).

Public institutions and their employees have faced criticism from both the public and the media for being ineffective and inefficient. This perception stems from inadequate service delivery, which is a result of ineffective PM within these institutions (Thusi et al., 2022). The financial management of municipalities in South Africa is determined by legislation providing guidelines for financial governance in the country, with the Constitution serving as the foundational framework (Mishi et al., 2022).

The provisions of the Constitution are supported by the Municipal Finance Management Act (Act 56 of 2003) and local government is also subject to the Public Finance Management Act (PFMA). The PFMA regulates the management of budgets in national and local governments, as stated by Mishi et al. (2022). However, according to Prins (2023), municipalities as a collective entity have shown substandard performance in effectively implementing authorised legislation, policies and integrated development plans (IDPs).

Effective financial management is crucial in the public sector, given that it supports precise and comprehensive evaluation of policy impacts while strengthening internal processes for planning, monitoring and accountability (Lekhera et al., 2023). Although poor financial management has been a significant challenge for South African municipalities, it is important to recognise the progress and efforts undertaken to address the issue. Numerous municipalities such as Kungwini and Dinokeng tsa Taemane have introduced reforms and initiatives aimed at enhancing their financial management practices (Mashabela & Thusi, 2024).

It is often believed that the quality of leadership within an organisation is critical to its growth, productivity and overall success. Poor leadership practices can have harmful effects, negatively impacting both the organisation’s performance and employee well-being (Wejinya & Agwoje, 2023). The 4IR is causing a global transformation in business organisations. The need for effective 4IR leadership has placed new demands on organisations to develop and select the right leaders (Alade & Windapo, 2020).

Leaders’ involvement in PM has received increasing attention in the last decade, with theorists claiming that it is beneficial in terms of improved employee attitudes, behaviour and performance in the public sector (Stankevičiūtė & Savanevičienė, 2021). However, the scarcity of competent leadership is recognised as a global phenomenon that affects all organisations and the issue of poor staff performance is secondary to this (Alade & Windapo, 2020).

Ineffective leadership and a lack of accountability are some of the factors that contribute immensely to governance failure within organisations (Thusi & Selepe, 2023). To achieve long-term success, workplace productivity and high employee engagement, it is essential to identify and address negative leadership practices (Hanum et al., 2023). Organisations can mitigate the adverse effects of such practices by investing in leadership development, setting clear expectations and ethical guidelines, fostering open communication, providing support and recognition, embracing diversity and inclusion, and articulating a compelling vision (Wejinya & Agwoje, 2023).

Leaders are likely to be exposed to unethical practices because of their strong desires, disregard for the rule of law and expansive discretionary powers, among other things (Fagbadebo & Dorasamy, 2021). Recently, much attention has been directed towards understanding the impact of organisational politics and employees’ perceptions of it (Al-Madadha et al., 2021). The governance crisis caused by political leaders’ mismanagement of public resources will worsen if citizens continue to support unethical practices by political leaders (Fagbadebo & Dorasamy, 2021). Organisational politics can significantly hinder employee performance, yet many organisations still do not pay attention to it (Al-Madadha et al., 2021).

The public sector has been described as having underlying complexity, which arises from the fact that the managerial culture exists in a sector that is heavily influenced by politics. This, in turn, may confound managerial discretion and complicate levels of accountability in a sector where expectations are high for the delivery of social justice, social responsibility, equity in society, democratic entitlements and social change (Armstrong, 2024).

In recent times, PM systems have been the subject of criticism, ranging from being viewed as a punitive measure to being regarded as a Western management philosophy that may lead to organisational unfairness (Mabasa & Flotman, 2022). It is therefore important that HR be reinvented to manage such PM obstacles. This involves thinking and responding in new ways while also learning continuously and acquiring the necessary skills.

Contrary to the views of some scholars, organisational politics is not inherently negative. Instead, how it is perceived has been linked to improved perceptions of performance (Awaah, 2023). Organisational politics is highly significant because of its potential impact on various workplace outcomes, such as job satisfaction, employee motivation, organisational commitment, work performance and organisational citizenship (Tivlumun et al., 2024).

Research design and methodology

Research approach

The study’s research approach entailed qualitative methodology with in-depth interviews to gather information and thematic analysis to explore the complexities of PM practices. Because of the futuristic nature of this study and the evolving nature of PM, a qualitative methodology was chosen to facilitate a thorough understanding of diverse participants’ views without imposing broad generalisations. The interpretive approach was also adopted for the study because it is practical and shows the reality of lived experiences. The interpretive approach enabled the researcher to let participants voice their opinions and to analyse textual data (Mohebi & Meda, 2021). The interpretivism paradigm was combined with phenomenology, which is a concept that provides researchers with a theoretical framework for understanding experiences at the level of perceived reality (Borghmans & Laletas, 2023).

Research methodology determines the types of research approaches to be applied and assists in the incorporation of the study’s philosophical assumptions (Chitsa, 2021). In an effort to describe interpretivism while exploring the factors constraining the future of PM, the study discovered and demonstrated major linkages between ontology, epistemology and methodology (Alharahsheh & Pius, 2020). Relating to ontology, this study assumes that PM constraints are not objective, but are shaped by a variety of organisational, technological and human aspects. Ontology, therefore, enabled the researcher to comprehend the extent of challenges as experienced and shared by the participants (Rosida et al., 2023). The study concedes that the phenomenon under exploration is influenced by subjective points of view and differs depending on circumstances.

Based on the epistemological approach, this study views knowledge as socially created, which means that participants’ subjective experiences and interpretations provide insights into future PM constraints. The study highlights that knowledge is gained through personal, detailed stories that demonstrate how people experience and interpret PM challenges. Therefore, epistemology for this study is linked to the information obtained from the study participants and the potential benefits of this information (Rosida et al., 2023). Finally, the methodology approach articulates the logic and flow of the systematic processes employed to acquire knowledge about a research problem (Otoo, 2020). This approach helped determine the research methodology employed and the type of data collection tool used for the study (Rosida et al., 2023). It improved the study by allowing it to explore not only practical or operational PM constraints but also value-based ones, such as ethical concerns or resistance to perceived unfairness.

Research strategy

This study’s research strategy focused on a qualitative approach, with in-depth interviews used to gain specific thoughts from a carefully selected group of participants. This method was chosen to allow for a deeper analysis of participants’ viewpoints, experiences and motives related to the topic being explored. An interpretive, phenomenological perspective was applied. Qualitative interviews were developed to encourage dialogue by allowing participants to share personal experiences, perspectives and background, resulting in a rich, thorough understanding of the research topic.

This approach not only assisted in formulating themes and sub-themes that quantitative methods might overlook but also enabled the researcher to capture the complexities and sensitivities inherent in participants’ lived experiences, thereby increasing the overall validity and depth of the study’s findings.

Research method

This study employed an exploratory qualitative methodology to explore the experiences of HR professionals working under the challenging conditions that impacted the future of PM at the CoTMM. This methodology was selected because of its capacity to provide a detailed and contextualised understanding of specific experiences and behaviours, enabling an in-depth exploration without relying on broad generalisations. Qualitative methodology was well suited for this study as it allowed for an in-depth understanding of complex phenomena, particularly the interplay of organisational change, financial constraints, poor leadership and organisational politics.

This study specifically aimed to explore the emotions, experiences and issues that HR professionals confronted when working with individual and organisational PM at the municipality (Rockman et al., 2022). Finally, this approach enabled the researcher to explore participants’ emotions and opinions and the rationale behind their actions. The primary research instrument for this study was a semi-structured interview conducted with the participants. Interview guidelines were provided to participants in advance and interviews were conducted via Microsoft Teams.

Research setting

The research setting comprised nine participants: four deputy directors, two directors, two functional heads and one Human Resources Officer. Most participants held leadership roles within the HR department at the CoTMM. All the participants were interviewed using Microsoft Teams.

Entrée and establishing researcher roles

Permission to conduct the study with HR professionals at the CoTMM was requested from the Director of Knowledge Management, who subsequently provided a formal approval letter. In addition, ethical approval was obtained from the Tshwane University of Technology Ethics Committee before the research study commenced. The ethical clearance letter assured that confidentiality and anonymity were upheld throughout the study.

Research participants and sampling methods

The study targeted a population of 222 employees from the HR department of the CoTMM. A purposive sampling approach was employed for this study to select a sample of nine HR professionals dealing with both individual and municipal performance units. Participants were selected according to specific inclusion criteria, which required a minimum of a 3-year formal qualification in HR and 3 years of relevant experience. Preference was given to individuals with five or more years of experience in PM.

Inclusion criteria: These are the specific characteristics that participants must have to be included in the study. They ensure that the study population is standardised and relevant to the research question. Common inclusion criteria include demographic characteristics such as age and gender (De Bell et al., 2023).

Exclusion criteria: These are characteristics that disqualify potential participants from being included in the study, even if they meet the inclusion criteria. The exclusion criteria include employees who do not have more than 3 years’ experience in PM and employees who do not have a formal qualification in HR. Exclusion criteria help to avoid factors that could interfere with the study’s outcomes or pose risks to participants (De Bell et al., 2023).

Data collection was concluded upon reaching saturation with the ninth participant. This non-random sampling method was intentionally applied to ensure that participants had the expertise and qualifications necessary for meaningful analysis, emphasising extensive experience and educational background as key selection factors.

Data collection methods

The researcher collected data via semi-structured interviews conducted using Microsoft Teams. Before data collection, the study’s purpose was clearly explained to participants, who were asked to complete and return a consent form. Data collection refers to multiple ways for gathering information about certain variables of the study and using it in the data analysis phase to achieve the study’s results, answer the research questions or test hypotheses (Taherdoost, 2021). The recorded interviews and transcripts provided the researcher with a comprehensive understanding of the lived experiences of the participants. A pilot study was conducted using Microsoft Teams interviews to ensure participants understood the process and to help the researcher identify any potential issues with the interview guide.

Data recording

Qualitative research produces a large volume of data, which requires careful recording for thorough analysis. Following the use of Microsoft Teams for data collection, the researcher recorded and transcribed verbatim all participants’ responses with their knowledge and given consent. Before the interviews, consent was received from all participants in the study to record their interviews.

Strategy to ensure data quality and integrity

The trustworthiness of this study was ensured through the application of four important techniques: credibility, transferability, dependability and confirmability. The study findings were a true reflection of the participants’ experiences as they derived from interviews conducted with different HR professionals to validate recurring themes to ensure the study’s credibility (Stahl & King, 2020). Well-designed qualitative data analysis and the usage of computer programmes are essential to increase credibility and trustworthiness in qualitative research (Shava et al., 2021).

Transferability was addressed by providing extensive descriptions of participants’ experiences, allowing other researchers to apply the results to their own contexts (Drisko, 2024). Dependability of data is the third criterion of trustworthiness. Dependability was demonstrated through a comprehensive research method, allowing other researchers who plan to undertake similar research to replicate the approach (Kakar et al., 2023). Lastly, the confirmability of the research study was achieved by ensuring that the findings were based on the responses from participants rather than influenced by the researcher’s bias or skewed by subjective interpretation (Kakar et al., 2023).

Data analysis

Thematic analysis was employed to identify patterns and themes in the HR professionals’ experiences with PM. The process of data analysis involved scrutinising the transcribed Microsoft Teams interviews, coding transcribed data and categorising codes into themes. Using an appropriate data analysis technique is crucial to conducting an efficient qualitative research study. According to Ugwu and Eze Val (2023), qualitative data analysis is the tool used by researchers to make sense of vast volumes of data so that the data may be presented to readers in a systematic manner.

The researcher followed a five-step data analysis process, which comprised organising and preparing the data, reviewing and evaluating it, coding the data, generating sub-themes from the codes and interpreting the findings. Each step is discussed in this section.

Gather and arrange data for analysis: Data collection was carried out via Microsoft Teams interviews. Data were audio recorded and transcribed with the permission of the participants.

Peruse and assess the data: The researcher scrutinised the data to become acquainted with the participants’ points of view.

Start data coding: Coding is a valuable tool for transforming raw qualitative data into an accurate theory. The approach condenses vast amounts of empirical data into manageable chunks, making data readily available for analysis (Mohajan & Mohajan, 2022, pp. 2–3). Computer-assisted qualitative data analysis software ATLAS.ti version 22.2 was utilised by the researcher to code all the information provided by the participants in the study.

Generate sub-themes through the coding process: The researcher coded themes and sub-themes in an organised manner, using a coding framework to translate the theoretical concepts into defined themes and sub-themes. The information was coded and organised into categories based on the codes. The coded data were then grouped to allow for data diversity to emerge.

Interpreting qualitative research findings: The meaning of the different participants’ responses was interpreted and shaped into an overall description by the researcher. To improve the credibility and trustworthiness of qualitative research, the researcher employed ATLAS.ti version 22.2, a computer-assisted qualitative data analysis software. Effective qualitative data analysis and computer programming are crucial to fostering credibility and trustworthiness in research (Shava et al., 2021).

Reporting style

The study’s findings were supported by verbatim quotations from the participants. To maintain confidentiality and protect their anonymity, each participant was assigned a unique number.

Ethical considerations

Permission to conduct the research was obtained from the Tshwane University of Technology’s Research Ethics Committee, ref. no.: FCRE2022/FR/01/003-MS (2). Participants in the study were first given a synopsis of the research to ensure their understanding before indicating voluntary participation by signing a consent form. The participants’ confidentiality and anonymity were maintained throughout the reporting process by using numerical identifiers rather than their real names. Thus, data privacy, credibility and trustworthiness were ensured. Participants were informed of their right to withdraw from the study at any time without facing any penalties. The study was designed to make the participants as comfortable as possible.

Results

This section presents the study’s main findings, organised thematically to highlight the primary constraining factors of the future of PM. Sub-themes were derived from the main themes to facilitate a more detailed analysis and deeper understanding. Based on the findings, organisational change, financial constraints, poor organisational leadership and inconsistent political practices are among the primary factors constraining the future development of an effective and efficient PM system throughout the municipality.

Table 1 presents a summary of the key demographic details of the participants, including their age, job title, years of service and highest educational qualification. Participants’ ages ranged from 36 years to 53 years, with lengths of service spanning from 2 years to 20 years. Their qualifications varied from a diploma to a master’s degree, corresponding to the positions held by the individuals in the study.

The data collected contained detailed information about factors constraining the future of PM. To improve the interpretation and analysis of data, the participants’ responses were organised into themes, which were subsequently subdivided into sub-themes. The sole purpose of organising data into themes and sub-themes was to obtain a deeper understanding of the factors constraining the future of PM. The following themes emerged: organisational change, financial constraints, poor organisational leadership and organisational politics. Table 2 outlines the themes and sub-themes that were used to generate the findings on the factors constraining the future of PM.

Theme 1: Organisational change

The study participants indicated that most employees were scared of change as they were afraid of the unknown; they just clocked in at work and went back home with no inclination to experience any changes in the organisation.

Sub-theme 1.1: Change resistance

One of the biggest obstacles to enhancing PM systems in organisations is the resistance to change. This profoundly affects organisational PM initiatives and therefore productivity. Fear of change and resistance to change contribute to a culture in which employees want to hold on to a fixed and rigid work routine which might restrict creativity and adjustment. This resistance could impede the organisation’s capacity to integrate new strategies, operations or technology, and thus negatively impact performance and development.

Participant 7 highlighted that:

‘I think the other hindrance, I think it’s most people what I’ve observed it’s a matter of change. Most people are scared of change so they emphasis also on change.’ (Participant 7, Male, Deputy Director)

Participant 5 additionally noted that:

‘But then because we are so stuck or maybe afraid of the change and afraid of the unknown that we just want people to clock, come to work 7:30, leave work at 4:00.’ (Participant 5, Male, Deputy Director)

To foster a culture that embraces change and encourages innovation it is critical that the municipality acknowledges and addresses the fear of change. This can include clear communication about the reasons for change, the benefits it will bring and the support available to help employees through the transition. Employee resistance to change is a negative reaction that impedes progress, therefore when it arises in an organisation it will hinder the sustainability of the organisation’s growth.

Theme 2: Financial constraints

Participants stressed that the municipality was subject to major financial restrictions that limited its ability to implement PM and effectively compensate employees.

Sub-theme 2.1: Budget restrictions

Insufficient funding for performance rewards undermines the effectiveness of the reward management system and may lead to staff demotivation.

Participant 2 voiced frustration with the current situation, stating that:

‘They refuse to link performance management with bonuses because of the financial difficulties the city is facing, there just isn’t enough money or budget.’ (Participant 2, Female, Functional Head)

Participant 3 added that:

‘Currently finances are not viable so because on the regulations it clearly states that the implementation of the performance bonus is based on or differ from one municipality to another depending on their financial viability.’ (Participant 3, Female, Deputy Director)

It is clear that participants were dissatisfied with the lack of performance incentives at the municipality. They would appreciate the introduction of a system that not only recognised and acknowledged their contributions but also rewarded their efforts towards the organisation’s productivity and success. Implementing performance incentives would create a more motivating and supportive work environment, encouraging employees to excel and contribute to the overall success of the organisation. Such an approach would enhance employee engagement and help cultivate a culture of participation, leading to a more efficient and effective PM system.

Sub-theme 2.2: Lack of performance bonuses

The study participants indicated that the absence of performance-based bonuses was an additional constraint, potentially lowering employees’ drive to pursue higher levels of performance and contributing to reduced commitment and morale.

Participant 2 opined that:

‘They don’t want to link the performance management with the bonuses due to the constraints that the city is experiencing that we don’t have enough money or budget.’ (Participant 2, Female, Functional Head)

Participant 3 elaborated:

‘With the city, we only implement the one notch because currently finances are not viable so because on the regulations it clearly states that the implementation of the performance bonus is based on or differ from one municipality to another depending on their financial viability.’ (Participant 3, Female, Deputy Director)

Participant 5 noted that:

‘Because of the state of the city currently, the performance bonuses are not being promised to anyone.’ (Participant 5, Male, Deputy Director)

Ensuring that employees are motivated through performance-based incentives is crucial, as a lack of motivation may result in minimal engagement, with staff merely fulfilling basic attendance requirements.

Theme 3: Poor organisational leadership

The study participants observed that certain departmental leaders lacked decisiveness, often hesitating to express their views and opinions, because of reservations about political powers within the municipality. The growth, productivity and success of an organisation are significantly influenced by the calibre of its leadership. If an organisation’s leadership makes poor decisions, the company’s financial performance may suffer significantly.

Sub-theme 3.1: Indecisive leadership

The quality of an organisation’s leadership plays a critical role in shaping its growth, productivity and overall success. Poor decision-making by leadership can have a detrimental impact on the organisation’s financial performance and long-term sustainability.

Participant 6 raised the concern that:

‘Some of the Departmental Heads are indecisive because they’ve got this fearing spirit to say this is political oversight.’ (Participant 6, Female, Director)

It is apparent that the participants were concerned about the leadership within the municipality and explicitly stated that leaders in management positions should be able to make decisions for the benefit of the organisation without fear or favour. This decisive leadership practice will capacitate the municipality to promptly and efficiently execute its strategies, leading to greater opportunities, quick reaction to problems and a general increase in the effectiveness of the organisation.

Sub-theme 3.2: Lack of vision

Ineffective leaders can significantly impact an organisation’s decision-making processes. When leaders display undesirable personality traits or make decisions unilaterally, it can undermine the quality and effectiveness of their decision-making.

Participant 7 maintained that:

‘Management is not that much in terms of the city, when they introduce things especially with reference to performance there isn’t any change management sessions.’ (Participant 7, Male, Deputy Director)

The participant suggested that the municipality’s management lacked ambition. There were no change management workshops to train or enlighten staff members when new initiatives were implemented, particularly those related to PM. To foster better leadership practices for the future, the municipality should invest in visionary leadership that embraces change and cultivates flexibility, responding proactively to emerging trends and disruptions.

Theme 4: Organisational politics

Participants in the study stated that politics in the municipality presented major obstacles to effective service delivery, which affected the performance of the municipality.

Sub-theme 4.1: Political interference

Political interference significantly influences workplace dynamics, particularly in decision-making and operational processes. While unions play a critical role in safeguarding employees’ rights, participants argued that they could also hinder the efficient functioning of the municipality.

Participant 1 submitted that:

‘We are working in an environment where it’s political. So, political interference is one of the factors.’ (Participant 1, Male, Human Resources Officer)

Participant 6 also touched on the harmful influence of politics, stating that:

‘We work in a political environment and a busy environment where by you will get vague feedback instead of somebody encouraging you but they would just opt to say you are useless and you don’t deserve to be in the position that you are at.’ (Participant 6, Female, Director)

Participant 7 argued that:

‘Government institutions are highly unionised to such an extent that I think that’s where the hindrance come from.’ (Participant 7, Male, Deputy Director)

Sub-theme 4.2: Political instability

Participants believed that political precariousness had undermined the municipality’s stability, effectiveness and accountability. This had resulted in a decline in critical services, income disparity and damaged public trust in the municipality’s ability to meet its residents’ needs.

Participant 6 noted that:

‘Instability politically and administrative, it’s also affecting us because of the trust relationship currently it’s broken because of you don’t know who to trust, who to talk to because of some when you say this, then it goes to the political office.’ (Participant 6, Female, Director)

Participant 1 added that:

‘Politicians are people who are working part-time because they are not with the administration full-time. They just come and go and also due to their terms where the political offices are operating in terms, you will find they have been working for five years and then they will go and another political party will be appointed for five years, so I also think it is a factor on its own.’ (Participant 1, Male, Human Resources Officer)

Participant 3 identified inefficiencies in the consultation process with unions over the approval of the PM policy, noting that:

‘So now because we’ve been consulting with organised labour unions, they were supposed to have given us their comments and then adopt the policy, but unfortunately this is not the case.’ (Participant 3, Female, Deputy Director)

Sub-theme 4.3: Political conflicts

Participants were of the view that political conflicts were a threat to the PM system because the unions were often not in support of the changes that were taking place within the organisation in relation to PM. While unions serve a purpose in safeguarding employees’ rights, participants argued that they could also restrict the efficient operation of the municipality.

Participant 6 described the workplace, highlighting that:

‘We work in a political environment and a busy environment whereby you will get vague feedback instead of somebody encouraging you.’ (Participant 6, Female, Director)

Participant 4 echoed these sentiments, maintaining that:

‘We are heavily unionised environment and that’s another thing that I can put in that the unions would interfere if I give you a five and then tomorrow you protest and then tomorrow it’s a labour issue.’ (Participant 4, Male, Deputy Director)

Participant 3 concluded that:

‘Our teaching with the organised labour, if they have a descending view or they need to address something which is not addressed on the policy, then we gonna have a problem because they might not adopt.’ (Participant 3, Female, Deputy Director)

Discussion

The main themes emerging from the data collection in this study were organisational change, financial constraints, poor leadership and organisational politics, with several sub-themes under each theme. The literature review highlighted significant challenges impacting the future of PM, which might create a complex environment undermining the municipality’s ability to maintain an effective PM system. Organisational change often disrupts existing systems, causing uncertainty and resistance among employees.

Financial constraints limit the resources available to execute and sustain PM initiatives, and poor leadership contributes to the problem by failing to provide a clear vision, direction and accountability. Furthermore, organisational politics may preclude objective decision-making, leading to inefficient practices and a lack of trust in the system. The influence of highly unionised work environments can present challenges to the integrity of performance evaluations, even in cases where employees receive high ratings.

The following are some of the participants’ responses that relate to the AMO theory.

Ability

An example of ability from the AMO theory resonates with Participant 4’s views, stating that, ‘Looking at issues based on the gaps that we have identified, then we would be looking at the interventions or the courses or the training courses that we can take them to’. This training intervention will improve the employee’s ability to analyse data and make informed decisions.

Motivation

An example of motivation from the AMO theory resonates with Participant 2’s views, stating that, ‘The PM needs to be linked to the bonuses, meaning that it will motivate employees to perform well, knowing that every end of the cycle, there is something that you are going to get in return’. This will increase employee desire and willingness to perform beyond expectations.

Opportunity

An example of opportunity from the AMO theory resonates with Participant 1’s views, stating that: ‘Want to be paperless, so we have created a link on the queue drive where employees will be submitting their performance agreement on including the quarterly reviews’. This will create an opportunity for employees to use their digital skills and knowledge to influence outcomes and feel valued.

The findings of this study offered valuable insights into the strengths of PM and identified areas for improvement to enhance its future effectiveness at the CoTMM.

Theme 1: Organisational change

The study’s findings revealed that most individuals within the municipality were afraid of change, primarily because of fear of the unknown. It is common for discrepancies and discomfort to emerge in specific areas of an organisation during the implementation of change management. The role of HR is to assess, analyse and address disruptions, expectations and perceptions to foster organisational well-being (Masan & Othman, 2023). Additionally, previous studies suggest that one of the factors that contributes to organisational change failure is employees’ resistance to change (Darmawan & Azizah, 2020). People are resistant to change because they perceive it as a threat to their status and financial rewards (Karaxha, 2019).

Sub-theme 1.1: Change resistance

The business environment is constantly evolving, requiring even market-leading companies to adapt to the changes. Previous studies highlight several challenges, including a lack of communication and poor support from management (Mukheli & Naidoo, 2023). Employee resistance to change, which is a negative reaction that hinders progress, can adversely impact the organisation’s long-term growth and sustainability if not effectively managed (Darmawan & Azizah, 2020). Resistance to change is a common problem in organisational settings, often resulting from fear of the unknown, a lack of trust in leadership, insufficient communication or perceived threats to job security. Mukheli and Naidoo (2023) suggest that resistance can be reduced by developing a new organisational vision that is appealing, achievable, conceivable and adaptable.

Theme 2: Financial constraints

Sub-theme 2.1: Budget restrictions

To remain competitive in the global economy, the municipality needs to build a strong organisational structure, offer competitive products and services, utilise innovative technology and develop a qualified workforce (Hlavatý et al., 2023). Budget restrictions are a conventional challenge for organisations, especially in the context of implementing new initiatives or sustaining ongoing programmes. In this study, participants identified budget limitations as a significant barrier to achieving optimal PM in the municipality.

Financial constraints often force organisations to prioritise certain initiatives over others, which leads to compromises in the quality and scope of PM strategies. According to previous studies, budgeting requires significant managerial effort to outline, align and secure operational needs, translating decisions into action. Effective budget planning and control can enhance organisational development and performance (Sanni & Fasesin, 2022).

Sub-theme 2.2: Lack of performance bonuses

Modern compensation strategies can motivate and retain employees, which is crucial for the municipality while seeking to address talent gaps (Zayed et al., 2022). However, as noted by Grigoryan (2024), adjusting compensation carries the risk of increased turnover among the most productive employees, along with higher absenteeism rates. Excessive wage reductions can demotivate employees, heightening their inclination to leave not only their current job but also potentially their profession.

According to previous studies, labour market insecurity has evolved from a focus on downsizing to stagnant wages and increasingly hostile workplace environments. Several factors contribute to wage stagnation, including changes in the sectoral landscape and skills requirements of the economy, shifts in workforce education levels, globalisation, increasing market concentration and dominance by large corporations, downsizing, outsourcing and the decline of labour unions (Palladino, 2021).

Theme 3: Poor organisational leadership

This study explored the impact of poor organisational leadership and found that it often arose from a lack of decisiveness. Leaders might frequently hesitate to make critical decisions, provide feedback, resolve conflicts or address performance issues, to avoid confrontation or discomfort. Prior research suggests that leaders play a vital role in influencing an organisation’s values, culture, change management, tolerance and employee motivation by employing strategic methods to accomplish organisational objectives (Cai, 2023).

Sub-theme 3.1: Indecisive leadership

The study participants highlighted the indecisiveness of departmental heads within the municipality, particularly their failure to make decisions and address PM challenges. These findings align with previous research to the effect that indecisive leaders are unsuited for leadership roles because of their negative impact on competitive advantage, growth and performance stability (Motloung & Lew, 2023). In addition, Kwiotkowska et al. (2022) maintain that the Industry 4.0 leadership framework emphasises the importance of identifying critical skills related to leadership and areas where competencies are lacking. Identifying these gaps is essential for addressing the challenges created by ongoing change and ensuring that leaders are prepared for the evolving landscape.

Sub-theme 3.2: Lack of vision

The research found that management lacked proactivity regarding performance and did not conduct change management workshops, reflecting a lack of vision. These findings support previous research, which suggests that many change management programmes fail despite extensive education and training, often because of discouragement and insufficient management and leadership (Harrison et al., 2021). In support of the foregoing, Kwiotkowska et al. (2022) state that a leader’s lack of vision can cause organisational paralysis and loss of focus. A clear shared vision is vital for empowering employees by aligning them with the organisation’s purpose.

Theme 4: Organisational politics

This study explored the effects of organisational politics, and the findings highlighted that politics were present in virtually all organisations and could have both positive and negative impacts on the workplace environment. On the one hand, organisational politics can foster a positive work culture and encourage healthy competition. On the other hand, it can result in conflict, mistrust and the development of an unhealthy work atmosphere (Awaah, 2023).

Therefore, studies on the impact of organisational politics on individual and organisational performance have had conflicting findings, demonstrating that organisational politics is neither inherently positive nor inherently negative. This highlights the importance of maintaining an ideal level of political activity to enhance competitiveness among members of the organisation (Abun et al., 2022).

Sub-theme 4.1: Political interference

The research findings revealed that political interference was prevalent in the municipality because of its high level of unionisation. These findings align with existing literature, according to which political interference in service delivery administration poses a significant challenge for many municipalities. Moreover, municipalities often struggle to manage the interaction between politicians and officials effectively (Aniobi et al., 2023). Judging from prior research, political interference in South African local municipalities presents a significant challenge to effective service delivery (Mamokhere, 2022).

Sub-theme 4.2: Political instability

This sub-theme highlighted the findings, which pointed to a breakdown in trust relationships as a result of political instability. This is consistent with prior research to the effect that political instability might be detrimental to performance. Political instability can change policymakers’ perspectives, resulting in frequent policy changes, risk and poor economic growth (Ghanayem et al., 2023). Research by Alfar et al. (2024) showed that conflict was a significant driver of political instability and a reflection of inadequate institutional quality and governance.

Sub-theme 4.3: Political conflicts

The research participants revealed that the municipality was a highly politicised workspace marked by multiple conflicts. Political conflicts have significant ramifications, including economic disruption and restricted access to essential goods and services for individuals (Prince et al., 2023). It was found that when unions opposed processes and policies, they withheld support for their implementation. Furthermore, in line with this, previous studies have indicated that developments in the political landscape can affect returns in two ways: directly, through infrastructure damage and economic downturns caused by conflicts, and indirectly, through changes in government policy (Alfar et al., 2024).

Practical implications

This study contributes to the existing body of knowledge on PM by providing insights into how HR professionals experience and navigate constraining factors that may shape the future of PM practices, particularly in the context of the public sector in South Africa.

Unlike much of the existing literature that focuses on theoretical models or private sector applications of PM, this study offers a context-specific, qualitative perspective by exploring the lived experiences of HR professionals in a metropolitan municipality, thereby highlighting unique challenges and opportunities not widely covered in prior research.

It is evident that the municipality needs to be ready for the new era of PM, which will be highly digitised and data-enabled. In the ever-changing corporate environment, PM is progressively shaped by the incorporation of artificial intelligence. Therefore, investing in technology, workforce development, financial budgeting methods and innovative governance models will be crucial for addressing the constraining factors which pose significant risks to the future of PM at the municipality. Addressing these challenges through strategic planning and fostering a culture of adaptability is essential for maintaining effective functioning and leadership which is focused on the citizens.

These findings could enable the municipality and its leadership to formulate targeted remedial actions, ultimately enhancing productivity for future PM initiatives.

Limitations and recommendations

The study’s small sample size restricted the extent to which its findings could be generalised to the wider population of HR professionals. However, while the small sample size may have limited generalisability, the study provided valuable insights into the complexities of the factors constraining the future of PM. Another study limitation was that the data collection timeline was limited to 3 months because of time restrictions, and thus, ongoing trends or behaviours might have been overlooked. The study also employed defined Microsoft Teams interviews, which may not have adequately captured the complexities of the participants’ experiences, as the interviews were online. Lastly, some participants delayed or failed to honour scheduled online interview meetings, even cancelling the interviews at the last minute, citing work commitments. These delays had a severe impact on the overall collection of data for the study.

It is recommended that the CoTMM’s managers align their PM practices to make them more sustainable. The CoTMM management is encouraged to identify, evaluate and consider employee problems and assist employees in addressing them in a joint effort. Some participants indicated that incentives related to PM should be used as motivation for employees to engage in PM. This would create a robust culture of participation in PM processes, as people would tend to stay with an employer that rewarded their efforts, which would in turn be a great retention strategy.

The study also found that the three AMO theory components, which consist of ability, motivation and opportunity, were critical work elements that informed employees’ attitudes to optimal performance, which could lead to success for South African public service organisations. Furthermore, according to the study findings, AMO theory helps pave the way for organisational management to employ efficient strategies and HR practices. The CoTMM’s PM issues are systemic, and the AMO theory offers an insightful lens through which to view them. According to the results, the PM system as a whole is compromised if any one of the AMO’s components fails. As a result, comprehensive reform needs to address the following: Leadership commitment and resource availability (opportunity); training and skill development (ability); and transparent, equitable and motivating practices (motivation).

By aligning PM reforms with the AMO framework, the municipality can build a more effective, credible and sustainable system. Exploratory research does not seek to provide definitive answers to research problems, but rather to explore them from different perspectives. As a result, the focus is on addressing new challenges that have received little or no prior investigation.

Future research

A similar study can be conducted in other South African municipalities to see if there are perhaps other factors constraining the future of PM. A quantitative study can be conducted to determine if there are demographic differences in how the employees perceive PM constraints.

Conclusion

The future of PM is shaped by the constant interplay between opportunities and challenges. However, the findings of the study offered the perspective that while developments in technology and changing working conditions create new possibilities for innovation, a number of constraints have a substantial impact on the effectiveness and adaptability of PM systems, as highlighted in the literature review discussions. The study found significant challenges, such as poor organisational leadership, financial constraints, resistance to change and organisational politics constraints, which negatively impact the transition to modern, agile PM practices.

Leadership shortcomings within the municipality, such as indecisiveness and a lack of vision, also prevent the municipality from adopting forward-thinking strategies, resulting in performance systems that are obsolete and inconsistent with organisational goals. Financial constraints, which include budgetary constraints and a lack of performance bonuses, limit investment in advanced resources and meaningful employee incentives, lowering system effectiveness and employee engagement. Furthermore, resistance to change at individual, managerial and organisational levels is an obstacle, as entrenched attitudes and outdated structures block the adoption of new practices. Finally, organisational politics highlights the need for more alignment between political structures, management and the diverse workforce, as well as the various perspectives on PM.

Acknowledgements

The authors thank Ms. Magriet Engelbrecht for her assistance with language editing. This article contains content that overlaps with research originally conducted as part of M.A.M.’s master’s thesis entitled, ‘The future of performance management at the City of Tshwane Metropolitan Municipality’, submitted to the Department of People Management, Tshwane University of Technology in 2024. The thesis was supervised by Prof. C.M. Schultz and Prof. L. Paul Dachapalli. Portions of the data, analysis and/or discussion have been revised, updated and adapted for journal publication. The author affirms that this submission complies with ethical standards for secondary publication, and appropriate acknowledgement has been made to the original work.

The authors declare that they have no financial or personal relationships that may have inappropriately influenced them in writing this article. The author, L.-A.P.D., serves as an editorial board member of this journal. The peer review process for this submission was handled independently, and the author had no involvement in the editorial decision-making process for this manuscript. The authors have no other competing interests to declare.

M.A.M. conducted the research, while C.M.S. served as the supervisor and L.-A.P.D. acted as the co-supervisor.

This research received no specific grant from any funding agency in the public, commercial or not-for-profit sectors.

The data that support the findings of this study are available from the corresponding author, C.M.S., upon reasonable request.

The views and opinions expressed in this article are those of the authors and are the product of professional research. They do not necessarily reflect the official policy or position of any affiliated institution, funder, agency or the publisher. The authors are responsible for this article’s results, findings and content.

References